Metropolitan Bank & Trust Co., the second-largest lender in terms of assets, said Friday its net income in the first quarter jumped 31.3 percent year-on-year to P10.5 billion on sustained strength of core businesses.
The bank said in a statement this resulted in a 13.1-percent return on equity, higher than the 10.3 percent recorded in the same period last year.
“Metrobank’s solid performance in the first three months of the year reflects our continued efforts to capture opportunities of a growing economy while we strive to keep our balance sheet strong against risks of volatile market conditions,” Metrobank president Fabian Dee said.
“For the rest of the year, we will continue making progress in further improving our products and services and implement strategies in line with our promise of keeping our customer in good hands,” he said.
Net interest income surged 28.8 percent to P24.9 billion, lifted by higher loans and a 54-basis-point hike in net interest margin to 3.9 percent.
Gross loans increased 12.5 percent year-on-year, driven by a 12.7-percent rise in commercial loans and 11.8-percent expansion in consumer loans.
Consumer loans business banked on a 30-percent growth in net credit card receivables and 10.7-percent rise in auto loans.
Total deposits grew by 10.8 percent to P2.3 trillion from a year ago, which low-cost current and savings accounts accounting for 62.1 percent.
Trading and foreign exchange gains reached P2.1 billion, while fee income rose 13.4 percent to P4.1 billion.
Operating expenses climbed by 13.5 percent to P16.9 billion on the back of higher taxes, technology spending and transaction-related expenses.
The strong revenue growth offset the impact of rising expenses, thus improving the cost-to- income ratio to 51.6 percent from 54.1 percent from the year before.
Pre-provision operating profit increased 26.4 percent to P16.1 billion.
Non-performing loans ratio eased to 1.8 percent from 2.2 percent in the same period last year. NPL cover improved to 189.3 percent, solidifying the bank’s buffer against any risks to the portfolio.
Consolidated assets hit P2.9 trillion, maintaining Metrobank’s status as the country’s second largest private universal bank. Total equity reached P320 billion.
The bank’s capital ratios remained among the highest in the industry, with capital adequacy ratio at 17.6 percent and common equity tier 1 ratio at 16.8 percent, above the BSP’s minimum regulatory requirements.